Automobile
Despite an interest in portfolio growth, regulatory requirements related to insurer premium growth led to a focused appetite of the top insurers on preferred risk types such as EVs and business vehicles, leaving a limited market for less-preferred risk types such as taxis, concrete mixers, and trucks. In the past, less preferred risk types could be insured through insurers in urban cities; however, the “Buy Insurance Where You Are” regulation has left these risks with limited or no risk transfer options. Pricing, policy wordings and deductibles were determined by regulation; however, various limit options were available to meet the needs of insureds. Looking ahead, current market conditions are expected to continue.
Casualty/Liability
Competition was fierce and appetite was healthy for mid-sized, well-performing risks. Capacity remained at or near historic levels. Underwriting was flexible and accommodating. Overall limits were generally stable. By contrast, the Product Recall market continued to tighten. Local insurers had limited appetite and international insurers tended to reduce sub-limits. Deductible increases were imposed for complex or critical products. Looking ahead, market competition is expected to increase for small and medium sized risks while complex and critical products are expected to continue to experience a tight market environment.
Cyber
Market conditions remained challenging; however, they improved slightly from recent quarters. Price increases decelerated. Appetite and capacity remained generally limited, although it expanded slightly as more insurers showed interest in increasing their capacity or starting to test the water. Underwriting remained rigorous and stringent. Centralized referral underwriting continued. Insurers managed their exposure through limit management strategies. Ransomware restrictions were common. Looking ahead, current market conditions are expected to continue until performance in this space improves.
Directors and Officers
Market conditions improved for non-US listed risks, while US-listed risks remained challenged. Price increases, when imposed, generally decelerated. Capacity remained sufficient but tended to shift; it was reduced on US-listed risks and increased on local risks. Though concern related to China Securities Class Action losses continued, underwriting became more accommodating as insurers sought to achieve growth targets. Looking ahead, current market conditions are expected to continue.
Marine
Overall market conditions remained stable. Most risks renewed with flat to modestly increased pricing. Underwriting remained flexible for Marine Cargo, but more reserved and prudent for Transporter’s Liability and Hull, especially for special vessel or special risks like windfarm installation vessel or wet towage. Limits, deductibles and coverages generally renewed “as is”. Looking ahead, current market conditions are expected to continue, with the notable exception of Hull of Windfarm Installation Vessel, which may experience market improvements as facultative reinsurers’ appetite for this risk type strengthens.
Professional Indemnity
The market varied widely by industry and risk type. In general, pricing remained flat and appetite was healthy as local insurers competed for well-performing risks. Capacity was sufficient; however, appetite was limited for certain challenging risk types like accountants. Capacity management strategies were leveraged to limit exposure. Looking ahead, current market conditions are expected to continue, with exceptions for challenging industries and risk types.
Property
While flat pricing could generally be achieved, market conditions became more challenging following the January 1st treaty renewals. Appetite and capacity deployment was conservative, and poor performing, less-preferred risk types experienced a limited market and challenging market conditions. Looking ahead, current market conditions are expected to continue.
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